A spending shock
a. causes unemployment and inflation to change in the same direction
b. results in a movement along the AD curve
c. shifts the AS curve
d. first affects the economy through the money market
e. causes equilibrium GDP to change at each price level
E
Economics
You might also like to view...
If the elasticity measure equals 3.5, then the demand is
A) elastic. B) unit elastic. C) inelastic. D) infinitely elastic.
Economics
As the value of U.S. exports ________, the quantity of ________ demanded increases
A) increases; foreign currencies B) increases; dollars C) decreases; dollars D) None of the above is correct because the value of U.S. exports has nothing to do with the quantity of dollars or foreign currency demanded.
Economics